The price you are quoted is not the price you pay. On a AED 2,000,000 off-plan unit the true cost is about AED 2,131,968 — roughly 6.6% above the headline. Here is every line.
The breakdown
| Item | Amount | When |
|---|---|---|
| Purchase price | AED 2,000,000 | Per the payment plan |
| DLD transfer fee, 4% | AED 80,000 | At registration |
| Trustee & admin | AED 10,200 | At registration |
| First-year service charge | AED 21,768 | At handover |
| Snagging & handover | AED 20,000 | At handover |
| Total | AED 2,131,968 |
Line by line
DLD transfer fee. Four per cent of the registered value, plus about AED 4,200 in admin, which I have folded into the trustee line. Paid once. Non-negotiable.
Trustee and admin. The registration trustee office charge. AED 4,000–6,000 plus the DLD admin fee.
First-year service charge. 907 sq.ft at AED 24 per sq.ft. Payable at handover, not spread. This is the line most people forget entirely, and it is also the one most likely to come in higher than quoted — on comparable completions the first-year charge has landed 18–34% above the reservation figure.
Snagging and handover. Inspection, utilities connection, Ejari registration. AED 20,000 is a working figure; a thorough snagging inspection on a large unit costs more and is worth it.
What is not on this list
Agency commission. Two per cent, and on off-plan the developer pays it. It does not come out of your pocket and using an advisor does not raise your price.
Mortgage arrangement fees, if you are borrowing. Typically 1% of the loan plus valuation. Add roughly AED 12,000–15,000 on a AED 1M loan.
Exit costs. Not now, but plan for them: agency, NOC and developer transfer fees when you sell.
The number to hold on to
Add about 6.6% to any quoted price to get your real cash requirement, and more if you are borrowing. If a purchase only works at the sticker price, it does not work.